Brooge Energy (BROG)2023-05-05 20:24Financial Data and Key Metrics Changes - The company reported a revenue growth of 95% year-over-year to USD 81.5 million in 2022, up from USD 41.8 million in 2021 [9][40] - Adjusted EBITDA increased to USD 54 million in 2022, compared to USD 32.4 million in 2021, representing 66% of revenue [58] - Net profit for 2022 was USD 27.2 million, a 6% increase from USD 25.7 million in 2021 [20] Business Line Data and Key Metrics Changes - The company provided storage capacity of 1,001,388 CBM and related services to 14 customers, generating USD 76 million in storage revenue and USD 1.9 million in ancillary revenue [9][17] - Gross profit increased to USD 56.8 million in 2022, up from USD 26.8 million in 2021, primarily due to the availability of Phase II storage [18] Market Data and Key Metrics Changes - The company regained compliance with NASDAQ listing standards, allowing it to continue trading on the exchange [8][13] - The company is in advanced stages of planning a green hydrogen and green ammonia project, aiming to produce up to 700,000 metric tonnes of green ammonia per annum [35] Company Strategy and Development Direction - The company is considering expanding its storage facilities with a feasibility study for Fujairah Phase III, which would position it as one of the largest independent oil storage facilities in the region [34] - The management is focused on innovation and strategic partnerships, including a partnership with Siemens Energy [11] Management Comments on Operating Environment and Future Outlook - Management provided revenue guidance for over USD 125 million for 2023, an increase of at least 53% year-over-year, based on near 100% contracted storage capacity [36] - The company is addressing material weaknesses in internal controls over financial reporting and has implemented a remediation plan [50] Other Important Information - The company ended 2022 with USD 8.3 million in cash and cash equivalents, total assets of USD 473.7 million, and total liabilities of USD 88.5 million [44] - General and administrative expenses increased by 111% to USD 15.7 million in 2022, primarily due to legal and professional fees [42] Q&A Session Summary Question: When shall we expect the 2022 company financials and restated financials to be filed? - The company filed the audited financials for 2021 and 2022 on April 26, 2023, including restatement of prior years [45] Question: How much debt is on your balance sheet at the end of 2022? - The company had USD 280 million in total current liabilities, with USD 171.7 million related to borrowings [60] Question: Have the bondholders called an event of default or exercised their put option? - The bondholders have not called an event of default, and the company is in constant communication with them to seek waivers on certain technical breaches [61] Question: What steps has the company taken to remedy identified material weaknesses? - The company has put in place a remediation plan to address the identified material weaknesses in internal controls [50] Question: What is the status of the proposed go-private transaction? - The company engaged Grant Thornton for a fairness opinion, and any transaction will require approval from the Board and key stakeholders [52]